U.S. sues Wells Fargo over FHA-insured loan defaults

 
By The Associated Press | Published: October 10, 2012   

The federal government has sued Wells Fargo in a New York court, accusing the nation's largest mortgage lender of misrepresenting the quality of thousands of loans in order to be eligible for federal loan insurance.

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The lawsuit, filed Tuesday in federal court in Manhattan, seeks to recover “hundreds of millions of dollars” that the Federal Housing Administration paid out after borrowers defaulted on...
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